BLBG:U.S. Commodities Day Ahead: Texas Dust Bowl Drives Cotton Rally
ECONOMIC EVENTS, AGRICULTURE REPORTS:
Forecast Prior Time
(N.Y.)
Personal Income JUL 0.3% 0.1% 8:30
Personal Spending JUL 0.5% -0.2% 8:30
PCE Deflator YoY JUL 2.7% 2.6% 8:30
PCE Core MoM JUL 0.2% 0.1% 8:30
PCE Core YoY JUL 1.4% 1.3% 8:30
Pending Home Sales MoM JUL -0.9% 2.4% 10:00
Pending Home Sales YoY JUL 13.6% 17.3% 10:00
Dallas Fed Mfg. Activity JUL -8.5% -2.0% 10:30
Export Inspections-Corn AUG 25 29.51 11:00
Export Inspections-Soybeans AUG 25 10.85 11:00
Export Inspections-Wheat Aug 25 17.42 11:00
Crop Condition-Corn AUG 26 57% 16:00
Crop Condition-Soybeans AUG 26 59% 16:00
Crop Condition-Cotton AUG 26 31% 16:00
OTHER MARKETS:
Last % Chg % YTD
Crude Oil $85.45 +0.2 -6.5
Gold $1,815.35 -0.7 +28
TOP STORY:
Texas Dust Bowl Drives Cotton Rally as Rick Perry Prays for Rain
The worst U.S. crop conditions since the dust bowl era of the 1930s are tightening domestic supplies of cotton and boosting prospects for a rebound in prices that fell more than any other commodity this year.
COMMODITY EXCLUSIVES:
Koch, Gunvor Said to Pay Higher Premium for Indian Naphtha (1)
Koch Industries Inc. and Gunvor Group Ltd. paid higher premiums for Indian naphtha loading in September amid speculation regional demand is rising, according to at least three people with knowledge of the deals.
Putin Oil Tax Punishes Refiners as Yields Jump: Russia Credit
Russian refiners from Alliance Oil Co. to OAO Bashneft are being punished in the bond market as oil-tax changes benefit producers at the expense of companies that turn the crude into fuel.
Hedge Funds Turn Gas Bears After Five Months: Energy Markets
Hedge funds turned bearish on natural gas for the first time in five months as falling temperatures and slowing economic growth sapped demand for the power-plant fuel.
Bidvest Offers to Buy Capespan Shares, Topping Bid by Zeder
Bidvest Group Ltd. offered to buy 50 million shares in Capespan Group Ltd., a South African fruit exporter, for 2.40 rand apiece, Bidvest Finance Director David Cleasby said, topping a bid by Zeder Investments Ltd.
Solar Convertibles Slide Most Since ‘08 Amid Glut: China Credit
Convertible bonds issued by Chinese solar-panel makers are handing investors the steepest losses in almost three years as overcapacity causes product prices to tumble, wiping out earnings and putting credit ratings at risk.
Funds Boost Bullish Agriculture Bets as Yields May Slump (1)
Speculators increased bullish bets on agricultural commodities to the highest level since early May after adverse weather eroded yield prospects for corn and soybean crops in the U.S., the world’s top grower and exporter.
INDUSTRIAL METALS:
Copper Declines on Concern Chinese Lending Curbs May Cut Demand
Copper futures declined in New York on concern that moves to curb credit growth and tame inflation by China, the world’s biggest consumer of the metal, may reduce demand for raw materials.
Jiangxi Copper Gains in Hong Kong After Profit Hits Record (1)
Jiangxi Copper Co., China’s biggest producer of the metal, gained the most in four months after it reported first-half profit almost doubled to a record.
Rusal Seeks to Complete Debt Refinancing Talks in Four Weeks (3)
United Co. Rusal expects to complete debt refinancing talks in about four weeks, allowing the world’s largest aluminum maker to start paying dividends for the first time since it listed, said Deputy Chief Executive Officer Oleg Mukhamedshin.
MINING:
Vale’s First Coal Exports From Mozambique to Start, RM Says
Vale SA will export its first coal from Mozambique next week, Radio Mocambique reported yesterday, citing Candido Jone, the executive director of the state-owned ports and rail utility, Caminhos de Ferro de Mocambique.
JSW Rises After Saying Karnataka Ban Won’t Decrease Output (1)
JSW Steel Ltd., India’s third-largest producer, rose the most in six months in Mumbai after saying output will be unaffected by the mining ban in Karnataka because it has adequate raw material inventory.
QR Says Queensland Coal Haulage Dropped 18% After Floods (1)
QR National Ltd., Australia’s largest coal-train operator, said it hauled 18 percent less coal in Queensland in the first two months of its fiscal year as mines struggle to recover from record flooding.
BHP Australia Coal Miners to Resume Strikes as Talks Extended
Mine workers at BHP Billiton Ltd.’s coking coal mines in Australia are resuming strikes this week as negotiations on pay and work conditions are extended until September, a union official said.
PRECIOUS METALS:
Gold Drops as Bernanke Says Growth Intact, Offers No Stimulus
Gold fell for the first day in three after Federal Reserve Chairman Ben S. Bernanke said that growth will resume, boosting speculation the central bank may not add extra stimulus and eroding the appeal of haven investments.
AGRICULTURE:
Soybeans Rise to Six-Month High After Heat Hurts U.S. Yields
Soybean futures climbed to their highest level in more than six months in Chicago and corn also advanced on concern the effects of hot July weather in the largest U.S. growing states will reduce harvests.
Rice May Rally 22% as Thai Buying Raises Cost, Cuts Exports (1)
Rice may rally 22 percent by yearend as Thailand, the world’s largest exporter, buys the grain from farmers at above- market rates, pushing up costs for importers and fanning global inflation even as economic growth slows.
A Little Chocolate Goes a Long Way in Keeping Healthy Heart
More bad news for those battling a sweet tooth: eating chocolate is good for you.
Rubber Gains on Supply Concerns, Optimism on U.S. Recovery
Rubber advanced on concern that heavy rains in Thailand, the largest grower, may cut production and after concerns the U.S. economy will stall were eased, boosting optimism that the global recovery was intact.
Palm Oil Advances on Declining U.S. Soybean, Corn Crop Yields
Palm oil gained for the first time in four days, tracking advances in soybean and corn prices on concern that adverse weather may affect U.S. harvests.
Rubber Gains on Supply Concerns, Optimism on U.S. Recovery
Rubber advanced on concern that heavy rains in Thailand, the largest grower, may cut production and after concern the U.S. economy will stall were eased, boosting optimism that the global recovery was intact.
SHIPPING:
Libya’s Agoco Ready to Resume Crude Output, Exports in September
Libya’s Arabian Gulf Oil Co. said it will be ready to export crude at the end of September, two weeks after resuming production at two fields following a four-month halt due to the armed rebellion against leader Muammar Qaddafi.
Kenya’s Mombasa Port to Receive Corn, Cars and Fuel Oil (Table)
The following vessels are expected to arrive at the Kenya’s Port of Mombasa by Sept. 10.
Irene Nears Canada Border After Downgrade to Post-Tropical (3)
Irene, downgraded to a post-tropical cyclone from a hurricane, neared the U.S.-Canada border after killing 18 people, sending rivers to near-record heights and knocking out power to almost 6 million customers in 13 states and the District of Columbia.
ECONOMIES:
China to Lock Up More Cash to Tighten Liquidity, Tame Inflation
China broadened the base of reserves it requires commercial lenders to deposit with the central bank to control liquidity and limit inflation, economists said.
Central Bankers Urge Governments to Throw Economic Lifeline (2)
Central bankers gathered at an annual retreat in Jackson Hole, Wyoming, this weekend had a message for political leaders: monetary policy alone can’t keep the global expansion going.
China Widens Reserve Ratio to Limit Inflation, Analysts Say (1)
China broadened the base of reserves it requires commercial lenders to deposit with the central bank to control liquidity and limit inflation, economists said.
Finance Chief Noda Wins Race to Succeed Kan as Japan Premier (2)
Yoshihiko Noda was elected head of Japan’s ruling party, paving the way for the 54-year-old finance minister to become the third prime minister since the party took power two years ago.
Singapore Picks Lee’s Man as President, Narrowly Avoiding Upset
Former Deputy Prime Minister Tony Tan was elected as Singapore’s next president with a margin of about 0.3 percent over his nearest rival, a result that signals the ruling party still has more to do to appease voters.
OTHER MARKETS:
Stocks, U.S. Futures Gain on Economic Outlook; Gold, Franc Fall
Stocks rose for a second day and U.S. index futures climbed after Federal Reserve Chairman Ben S. Bernanke said the world’s biggest economy is gradually recovering and he has the tools to spur growth. Gold and the Swiss franc retreated, while Greek stocks soared.
Franc, Yen, Dollar, Fall as Stock Gains Curb Demand for Safety
The Swiss franc, yen and dollar weakened against most major counterparts as stocks rose amid optimism the world economy will avoid a recession, reducing demand for so-called haven currencies.
European Stocks Advance Before U.S. Consumer-Spending Report
European stocks rose after two days of losses dragged equities near to the cheapest valuation in more than two years and as investors awaited a report that may show U.S. consumer spending gained. Asian shares and U.S. index futures climbed.
High Rare-Earth Prices Force Hitachi, Toyota to Find Alternative
Japanese rare-earth buyers are switching to quarterly sales contracts and looking for alternative sources after China curbed shipments, increasing prices for the materials used in hybrid cars and missiles.
Obama Said to Choose Krueger for Council of Economic Advisers
President Barack Obama plans to name Alan Krueger, a labor economist and former Treasury official, to lead the White House Council of Economic Advisers, said a White House official.
Cleanup Under Way to Restore Power to Millions Cut by Irene (1)
Thousands of workers began clearing tree branches and repairing electrical lines to restore power to almost 6 million U.S. homes and businesses after Hurricane Irene left a trail of destruction from North Carolina to Maine.
Emerging-Market Stocks Rise for Second Day on U.S. Outlook
Emerging-market stocks rose for a second day, driving the benchmark index toward a week high, after the Federal Reserve said the U.S. economy is gradually recovering and it has the tools to spur growth.
Libyan Rebels Push to Sirte Amid Protests Over Appointments (1)
Libyan rebels pushed toward Muammar Qaddafi’s hometown of Sirte amid protests over the opposition National Transitional Council’s planned appointment of former members of his security forces.
Oil Trades Near Three-Day High; Gasoline Drops as Irene Passes
Oil traded near a three-day high in New York as investors speculated that growth will recover in the U.S., spurring demand in the biggest crude consumer. Gasoline slid as Irene was downgraded to a post-tropical cyclone.
SPORTS:
Arsenal Eyes Chelsea’s Alex After Worst Loss Since 1896: Roundup
The following is a roundup of soccer stories from U.K. newspapers, with clickable links to the Web.
Kraft Wins U.S. Amateur Golf Title Over Top-Ranked Cantlay
Kelly Kraft beat top-ranked Patrick Cantlay to win golf’s U.S. Amateur Championship, earning invitations to three major tournaments in 2012 and a spot on the U.S. Walker Cup team.
To contact the editor responsible for this story: Stuart Wallace in London at swallace6@bloomberg.net
